Saudi Aramco and Japan’s Sumitomo have agreed to transfer ownership of the Rabigh-2 petrochemicals project to their Petro Rabigh joint venture company. The partners signed the agreement on 31 July, following the completion of due diligence by Petro Rabigh. The Rabigh-2 expansion of the existing refining and petrochemicals complex at Rabigh is being built under a number of engineering, procurement and construction (EPC) contracts awarded by Petro Rabigh in 2012.
Aramco and Sumitomo each hold 37.5% equity in Petro Rabigh, with 25% being traded publicly. Petro Rabigh says that the transfer of ownership is dependent on the founding shareholders continuing to secure project financing, ensuring project compliance with government regulations, and working with the operating company on an “ownership transfer roadmap.” The transfer is expected to be completed in the fourth quarter of 2014. (CONTINUED - 362 WORDS)